Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Canada's Trade Deficit Widens to $1.6BMonday, August 15, 2011 > 10:43:33
Canada's trade deficit with the rest of the world grew to $1.6 billion in June as exports fell more than imports, Statistics Canada said Thursday. Analysts had expected the deficit would be unchanged from May's $1 billion figure.
Drops in energy and automotive product exports were the main reasons behind the overall decline in exports, which fell 1.7% to $36.5 billion. Exports of energy products slumped 5.1% to $8.7 billion in June. StatsCan said that was due to lower volumes of exports and lower prices.
Merchandise imports fell just 0.2% to $38 billion.
While Canada was in a deficit position with the rest of the world, it recorded a trade surplus with the United States. The surplus shrank slightly to $3.6 billion in June, down $100 million from May. Canada's trade deficit with countries other than the United States hit a record $5.2 billion in June, up from May's $4.8 billion.
Also Thursday, the U.S. Commerce Department reported that the U.S. trade deficit rose 4.4% to $53.1 billion US in June. That's the largest trade imbalance since October 2008.